Rice market in Sri Lanka

Earlier Report Observations

Rice production in Sri Lanka rose from 3.9 million tonnes in 2018 to a peak of 5.2 million tonnes in 2021, supported by consistent demand linked to income growth, population expansion, and urbanization. The market remained characterized by an oligopolistic structure where large-scale millers with political patronage dominated milling and distribution, concentrating market power.

A pivotal government ban on chemical fertilizer imports in April 2021 severely impacted yields, leading to a sharp production drop to 3.4 million tonnes in 2022. This contraction coincided with global rice price surges and local currency depreciation, which increased import costs. By 2023, production recovered to 4.5 million tonnes as authorities implemented a maximum retail price, planned large-scale paddy purchases for cooperative networks, and expanded storage capacity to 400 thousand tonnes to improve stock management.

Oligopolistic control by major millers contributed to recurring market shortages and price instability despite adequate harvests in some years. Government interventions aimed to counter this market manipulation, while rising health-conscious demand for red rice added pressure on specific segments. Consequently, the total rice market volume fluctuated, reaching 5.3 million tonnes in 2021 before falling to 4.2 million tonnes in 2022 and recovering to 4.5 million tonnes in 2023.

Production rice in Sri Lanka

In kind, 2017-2020, K t

From 2017 to 2020, Sri Lanka ranked as the 18th largest producer of rice globally.

Top producers of rice, 2017-2020

World map of production of rice, 2017-2020

Rice production in Sri Lanka increased for the third consecutive year. In 2020, the country produced 5 121 thousand tons of rice, marking an 11.5% rise compared to 2019. Over the 2017-2020 period, production grew by 114.9%, with a compound annual growth rate of 29.0%.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Sri Lanka's rice production value also rose for the third year in a row. In 2020, the output was valued at 4 736 million US dollars, reflecting a moderate year-on-year increase of 9.4%. From 2017 to 2020, production value increased by 93.8%, with a compound annual growth rate of 24.7%.

Annual dynamics of production in Sri Lanka in value, 2017-2020, M $ US

Exports rice from Sri Lanka

Exports in kind, K t

Sri Lanka's rice export volume increased for the third consecutive year. In 2020, exports reached 9.4 thousand tons, showing a sharp rise of 77.5% compared to 2019. Over the 2017-2020 period, exports grew by 88.6%, with a compound annual growth rate of 23.6%.

Annual dynamics of product's exports from Sri Lanka in kind, 2017-2020, K t

From 2017 to 2020, no single market dominated Sri Lanka's rice exports. The United Arab Emirates (14.5% of exports in kind), Canada (14.1%), and the United Kingdom (13.6%) together accounted for 42.2% of total exports, while numerous smaller partners each held modest individual shares.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Sri Lanka in kind, 2017-2020

Exports in value, M $ US

The market showed an unstable trend during this period. Exports bottomed in 2019 and peaked in 2020, with a 1.7-fold difference between these years. In 2020, exported rice from Sri Lanka was valued at 8.7 million US dollars, up 74.2% year-on-year. The lowest value was recorded in 2019 at 5.0 million US dollars, with the largest decline of 3.7% occurring that year.

Annual dynamics of product's exports from Sri Lanka in value, 2017-2020, M $ US

From 2017 to 2020, Sri Lanka's rice export structure in value terms remained highly diversified. The United Arab Emirates (14.5% of exports in value), Australia (13.3%), and Canada (12.5%) together made up only 40.3% of total flows, with the remaining 59.7% distributed among a long tail of smaller markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Sri Lanka in value, 2017-2020

Imports rice to Sri Lanka

Imports in kind, K t

Sri Lanka's rice import volume declined for the third consecutive year. In 2020, imports totaled 15.8 thousand tons, which is 34.8% lower year-on-year. Between 2017 and 2020, imports decreased by 97.9%, equating to an annualized rate of 72.4%.

Annual dynamics of product's imports to Sri Lanka in kind, 2017-2020, K t

Throughout 2017-2020, India and Myanmar concentrated 84.7% of Sri Lanka's total rice imports in kind, with the remaining share distributed among other destinations that made smaller individual contributions.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Sri Lanka in kind, 2017-2020

Imports in value, M $ US

Sri Lanka's rice import value also fell for the third year in a row. In 2020, imports amounted to 10.4 million US dollars, down 18.5% from 2019. Between 2017 and 2020, import value decreased by 96.5%, equating to an annualized rate of 67.4%.

Annual dynamics of product's imports to Sri Lanka in value, 2017-2020, M $ US

From 2017 to 2020, Sri Lanka's rice imports in value terms were largely oriented towards India and Pakistan, whose combined share reached 82.7% of total flows, with other destinations playing a secondary role.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Sri Lanka in value, 2017-2020